Long Position on STX @ $114.00 on 12/30/2021 (Fundamentals)

Seagate Technology Holdings (STX) provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally.

The company offers hard disk and solid state drives, including serial advanced technology attachment, serial attached SCSI, and non-volatile memory express products; solid state hybrid drives; and storage subsystems.

It also provides enterprise data solutions portfolio comprising storage subsystems and mass capacity optimized private cloud storage solutions for enterprises, cloud service providers, and scale-out storage servers and original equipment manufacturers (OEMs).

In addition, the company offers external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 16TB. It sells its products primarily to OEMs, distributors, and retailers.

Seagate Technology Holdings reported 1st Quarter September 2021 earnings of $2.41 per share on revenue of $3.1 billion. The consensus earnings estimate was $2.21 per share on revenue of $3.1 billion. Revenue grew 34.6% on a year-over-year basis.

The company said it expects second quarter earnings of $2.20 to $2.50 per share on revenue of $2.95 billion to $3.25 billion. The current consensus earnings estimate is $2.01 per share on revenue of $3.03 billion for the quarter ending December 31, 2021.

With COVID cases continuing to rise, demand for cloud drives has also subsequently increased, making way for higher prices for cloud manufacturers, like Seagate. The stock should be reaching its buy point.

Entry Point: $114.00

Trading Range: $58.04 - $116.93

Stop Loss: $110.00

Target Price: $120.00

Position closed on 1/27/2022 at price of $108.00 with a -5.26% loss in 28 days.

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